‘Profitable’, ‘separate entity’: WeWork India clarifies after parent group files for bankruptcy in US
WeWork India, the Indian arm of global co-working space firm WeWork Inc, on November 6 said it is a “profitable" and “separate entity" whose operations would not be affected by the parent group's bankruptcy filing. The clarification came hours after WeWork Inc filed for Chapter 11 bankruptcy in New Jersey and listed nearly $19 billion in debt. WeWork India, in a statement, said it “operates independently of WeWork Global, and our operations will not be affected in any manner".
Also Read: How WeWork founder Adam Neumann's wealth grew while the company tumbled. Details “It is a separate entity in itself, and we are not a part of this strategic reorganisation process," the company clarified. “We will continue to hold the rights to use the brand name as part of the operating agreement, while serving our members, landlords, and partners as usual." Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! WeWork India further noted that the Chapter 11 filing “does not impact the operations of the global entity" as it continues to remain in possession of its business, operating as usual.
The process restructures the debts and the leases of WeWork Global in the US and Canada, it said. “This is a step towards improving its business’ economics, and enabling them to continue delivering best-in-class services well into the future," the statement added. Notably, WeWork India is backed by majority stakeholder Embassy Group.
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